You And Your Visa Credit Card

One of the greatest success stories in the credit industry is the rise of the Visa card to its current place as the most popular credit card in the United States. Originally issued in 1958 as the Bankamericard, the Visa card is a joint venture comprised of over 21,000 financial institutions. These financial institutions are all responsible for marketing and issuing Visa cards to credit worthy applicants. There are several different types of Visa cards that may be issued from the different financial institutions to applicants that meet certain criteria used to determine eligibility for the Visa card. These types of Visa card include prepaid credit cards, debit cards, and traditional credit cards.

For many individuals, the traditional Visa card is the most desirable. The Visa card is issued to credit worthy applicants with a predetermined credit limit. The individual can charge purchases to the Visa up to the limit on the card and is expected to pay off a portion of the balance on the card in monthly increments. The application for Visa credit cards requires the individual applying for the card to give the financial institution some basic information, such as name, social security number, name of employer, and gross monthly income. The interest rates for these cards vary by which financial institution is issuing the Visa card and the differences between the rates charged by different financial institutions can be significant. Some financial institutions also offer Visa cards with an annual fee requirement to individuals with poor credit scores or that have no credit history. These annual fees can range from $49 to $150 depending on the institution that is issuing the card.

Another option for individuals to obtain a Visa card is to request a prepaid Visa card. With a prepaid Visa card, the individual makes a deposit into an account attached to the Visa card in their possession. The balance of the account can be used to make purchases with the Visa card, with the total of the purchases being deducted from the account as the transaction is made. These accounts cannot be overdrawn and if the amount of the purchases is more than the balance of the account attached to the card, the transaction will be rejected by the card issuer. This option is frequently used by individuals that are unable to obtain a credit card on their own due to a poor credit history or for parents that would like their child to have a credit card to use for purchases, but want to limit the amount of money that their child can spend.

The third option for Visa cards is the Visa debit card. These credit cards are linked directly to the card holder’s bank account and the amount of the purchases obtained with the credit card is taken directly out of the individual’s bank account. These Visa debit cards are typically linked to a checking account and are issued by the bank that holds that checking account. This type of card is becoming more common as more banks issue debit cards to their customers that open checking accounts. There are pros and cons to each different Visa card option and individuals requesting a Visa card should weigh the differences carefully before deciding which card to obtain.